Zip Co (ASX:ZIP) has delivered a powerhouse performance for the first half of fiscal year 2026, headlined by an 5.6% growth in record cash EBTDA to $124.3 million.
The company's strategic pivot toward high-growth markets is paying off, as significant operating margin expansion and robust transaction volumes have prompted management to upgrade its full-year guidance.
Total transaction volume reached a record $8.4 billion, a 34.1% increase year-on-year, fueled largely by a dominant performance in the United States.
The US market now accounts for 75% of Zip's total volume, with TTV and revenue in the region climbing by 44.2% and 46.4% respectively.
The momentum is supported by a growing base of 6.6 million active customers and over 90,000 integrated merchants.
While revenue margin saw a slight dip to 7.9% due to the shifting geographic mix, the company maintained a strong cash net transaction margin of 3.8%,
demonstrating disciplined unit economics even amidst rapid scaling.
Group CEO Cynthia Scott emphasised that the company is "increasing profitability at scale," noting that the ANZ business also delivered a remarkable 138% increase in cash earnings.
The company has completed its $100 million share buyback and is monitoring market conditions for a potential dual listing in the US.
At the time of reporting, Zip Co’s share price was $1.74.